Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

West Bromwich sets precedent as savings account rate falls to 0%

12 January 2009 / by Rebecca Sargent

West Bromwich has done what experts feared would happen as it cut the interest rate on its bonus saver account to zero per cent when the bonus of two per cent is not earned.

And, according to reports, West Bromwich building society made the rate cut before the Bank of England's latest decision to cut base rate by a further 0.5 per cent to an all time low of 1.5 per cent, suggesting that other financial institutions will soon follow suit.

Nevertheless, the news has come as no surprise as since the first interest rate cut in October, banks and building societies have been quick to slash rates on their savings accounts.

Figures compiled by Moneyfacts.co.uk show that since December's rate cut of one per cent, 77 per cent of providers have announced saving rate cuts, the majority of which have been the full cut.

The financial information site has been recording savings rates since 1988, and following the latest cut, predicts that the average savings account rate will drop to the lowest level ever seen.

Commenting, Michelle Slade, analyst at Moneyfacts.co.uk said: "With so many accounts now paying such low rates and the number likely to increase, savers really need to make sure they review the rate they are getting."

There are also some good fixed rate savings rates on the market for those who can afford to put their money away and not make any withdrawals, including the Halifax International Regular Saver which is offering a rate of 6.0% fixed for 12 months.